Since OpenAI announced ChatGPT in November of 2022, many business executives have focused their attention on generative AI. This relatively new technology set off a frenzy around AI and caused companies to pay attention to it for the first time. This is a positive development, since the technology is powerful and important, and enables many new business possibilities.
However, many companies have been using AI for years with less visibility. Those that have recently discovered generative AI are at risk of overlooking an older and better-established form of AI, which we’ll call “analytical AI.” This form of AI is by no means obsolete and is still an important resource for the great majority of companies. While a few applications of AI employ both analytical and generative AI, the two AI approaches are largely separate. Companies need to decide which type is the best fit for each specific use case.
To make decisions about the relative importance and value of generative AI and analytical AI, organizations must first understand the differences between the two technologies, and the different benefits and risks associated with each. They can then make decisions about which to prioritize under what circumstances based on their strategies, business models, risk tolerance, and other situations.
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